Question
A firm with a 10 percent cost of capital is considering a project for this years capital budget. The projects expected after-tax cash flows are
A firm with a 10 percent cost of capital is considering a project for this years capital budget. The projects expected after-tax cash flows are as follows:
| Year: | 0 | 1 | 2 | 3 | 4 |
| Cash flow: | -$10,000 | $3,200 | $3,400 | $4,700 | $4,700 |
Calculate the projects net present value (NPV).
| a. | $6,000.00 | |
| b. | $2,460.35 | |
| c. | $2,236.68 | |
| d. | $4,545.45 | |
| e. | $928.22 |
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American Public School Finance
Authors: William A. Owings, Leslie S. Kaplan
3rd Edition
113849996X, 978-1138499966
